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Based on a model of Stackelberg game between the manufacturer and the retailer, this paper offers the joint optimization on price, stock and channel for the manufacturer when the market demand is stochastic with linear additive shock. We find that the optimal price is decreasing with price elasticity, while the optimal stock is increasing with revenue share ratio, decreasing with price elasticity...
This paper tries to solve the channel optimization for the manufacturer and the retailer who face stochastic market demand by not only considering the structure of cost and revenue sharing in the supply chain but also incorporating the channel marketing effort into the demand function as an endogenous optimization decision. It offers the optimal marketing inputs and channel choice for the two parties...
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